Kenny has $500 in an account. The interest rate is 5% compounded annually. To the nearest cent, how much interest will he earn in 1 year?

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Urvah Shabbir asked Sep 19, 2023

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Kenny has $500 in an account. The interest rate is 5% compounded annually.

To the nearest cent, how much interest will he earn in 1 year?

Mathematics
high-school

Urvah Shabbir asked Sep 19, 2023

by Urvah Shabbir

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23 votes

Answer:

$525

Explanation:

new value = starting value(1 + rate)^years

new value = 500(1 + .05)^1

new value = 500(1.05)

new value = $525

Sundar Venugopal answered Sep 21, 2023

by Sundar Venugopal

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22 votes

Answer:

Step-by-step explanation: Im not sure how to do it thats just what IXL says

Nicolae answered Sep 26, 2023

by Nicolae

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